Q.What home based business deductions should I avoid?
A.When you own a home based business, you must be careful only to deduct those expenses actually related to the operation of your business.
Do NOT deduct:
- all, or most of, the cost of operating your personal residence;
- payments made to children who performed chores around the house;
- excessive automobile expenses when the automobile is used for both business and personal use; and
- equipment expenses when the equipment is used for both business and personal use ((e.g., DVD player or CD player).
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